The cryptocurrency community has shown interest in the move that saw an astounding 7,000 Ethereum (ETH) moved to Robinhood, the well-known stock trading app, at the same time as Ethereum’s value surged beyond $3,000.
Since rising from a low of $2,862 on May 15, Ethereum, the second-largest cryptocurrency by market value, has increased gradually. Ethereum’s price continues to increase, breaking over the psychological $3,000.
As of this writing, ETH has risen 3.14 percent to $3,131 over the previous day, after hitting intraday highs of $3,148.
A transfer of 7,000 ETH worth $21,630,557 was made from an unidentified wallet to Robinhood, according to cryptocurrency data tracker Whale Alert. There have been conjectures on the reasons for this significant shift and its possible effects on the market.
https://x.com/whale_alert/status/1791574306062840092
The transfer may be a prelude to a more significant market move as investors position themselves ahead of the Ethereum ETF decision.
Another idea is that, because one of the reasons tokens are moved to exchanges is for sale, a whale or huge holder may be using Robinhood’s platform for trading or custodial purposes. One reasonable argument would be that the move is intended to increase platform liquidity for Robinhood. In spite of all of this, it’s still unclear why the relocation occurred.
Ethereum ETF decision looms
It is anticipated that by next week, the U.S. SEC will make a decision on at least one application for an ETF that makes direct investments in Ethereum, after months of quiet. The SEC must decide whether to accept or reject VanEck’s proposal by May 23 after delaying decisions on fund applications for many months.
Some fund firms fear a rejection because their private interactions with the SEC have not been as vigorous as they were before to the approval of spot-Bitcoin ETFs in January, according to Bloomberg, which cited unnamed individuals familiar with the situation.
A lawsuit can eventually result from a denial. The August court victory over the SEC by Grayscale Investments paved the way for spot Bitcoin funds to be approved in January.
